Paulson To Vote Against MetroPCS Takeover By T-Mobile

The largest shareholder in MetroPCS Communications Inc., hedge fund Paulson & Co., plans to vote its 9.9% stake against the planned acquisition of the wireless carrier by Deutsche Telekom AG’s T-Mobile USA.

European Pressphoto Agency

In a letter to the MetroPCS board, manager John Paulson argued the deal’s structure is unfair to shareholders, but that it would support a restructured deal and believed the company could get a more attractive alternative offer.

Paulson joins another hedge fund, P. Schoenfeld Asset Management, which has a stake of about 2.3%, in opposing the deal. P. Schoenfeld has filed a proxy to solicit other investors to join its position, but it remains unclear if the opposition can get enough support to affect the deal. Shares of MetroPCS were unchanged at $9.80 in after-hours trading.

Representatives of MetroPCS and T-Mobile didn’t immediately respond to requests for comment Thursday. The board of MetroPCS has continued to back the combination.